We unwrap this year’s best performing investment company sectors
Technology & Media was the top-performing investment company sector over the year to 30 November, data from the AIC can reveal. The sector produced an impressive return of 34% over the year so far, compared to the average investment company return of 14% over the same period.
As interest in sustainable investing continues to rise, companies in the Environmental sector delivered the second-highest return of 30%. Placed third and fourth, the UK All Companies and UK Smaller Companies sectors also delivered impressive returns, 27% and 26% respectively, showing that the UK has been a rewarding region for investors during a time of intense political uncertainty.
Top 10 investment company sectors by % share price total return from 1 January to 30 November 2019. Source: AIC/Morningstar. “N/A” is shown where sectors had fewer than three constituents for a period.
Annabel Brodie-Smith, Communications Director of the AIC, said: “Political uncertainty, trade wars and worries about an economic slowdown have been on investors’ minds all year. So it’s good to see the average investment company delivering a healthy 14% return.
“Despite the lack of clarity surrounding Brexit, the UK sectors have delivered strong returns. And as more investors have become interested in ESG investing, it’s encouraging that the Environmental sector has performed well, with a return of 30% since January.
“Although it’s always interesting to look back at the best-performing companies at the end of the year, it’s important to remember that investing should be for the long term and past performance is not an indicator of future returns. Investors need a balanced portfolio and the investment company industry offers a broad variety of sectors, regions and risk profiles to match these needs. Investors should also consider their objectives and the level of risk they are willing to take when looking at potential investments and, if they have any concerns, should speak to a financial adviser.”
